The growing demand for new and eco-friendly energy resources has raised the need of sustainable sources or renewable energy for use in present era. A vapor absorption refrigeration system (VARS or VAS) is a closed loop refrigeration system which requires low heat for its functioning and, it is therefore, considered an eco-friendly solution. Since, generator is the main component of VAS which can significantly influence the efficacy of overall system, the current paper involves modeling and thermal analysis of generator using Computational Fluid Dynamics (CFD). The objective of this study is to optimize the heat transfer by changing baffle spacing of generator heat exchanger, running on a single effect LiBr/ water absorption cycle. For this purpose, hot water driven generator of 1ton capacity is taken. The simulation results of CFD were validated by comparing them with theoretical results. The overall design estimation and design technique that follows Birmingham Wire Gauge (BWG) and Tubular Exchangers Manufacturers Association (TEMA) standard are considered in this study. It was found from the analysis that the design model with smallest baffle spacing has the highest heat transfer coefficient. On reducing the baffle spacing from 137mm to 101mm, an increment of 48% in overall heat transfer coefficient was observed. Likewise, an increase in velocity by 36% and drop in static pressure by 27% were seen. Similar trend was observed in the theoretical results.